Saturday, April 5, 2025

Victorian Premier threatens to strip councils of planning powers amid housing crisis

Victorian Premier Jacinta Allan has declared she will strip councils of their planning powers if they block the Government’s efforts to unlock new housing capacity across the state.

The Premier joined with Minister for Planning, Sonya Kilkenny today in Hawthorn to announce the Government’s final council housing capacity targets and call on all councils to join the Government in meeting them together.

“Our state is growing faster than any other, we’re going to need 2.24 million new homes over the next 30 years – but where they are built really matters,” said Premier Allan.

“It’s why we’re setting clear housing targets for every local government area, to get more homes built close to jobs, transport and services.

“And if councils try and block too many new houses from being built, we’ll take away their planning powers and do it ourselves.”

Since releasing draft targets last year, the Premier says the Government has met with every Victorian council to understand their plans and the barriers they face in unlocking the capacity – and has worked with councils to help shape the final targets to ensure they are accurate, fair and achievable.

“It’s simple – work with us to unlock space for more homes or we’ll do it for you.”

“It’s not fair that Victorian families and young people have been completely locked out of living in some areas, while other parts of Melbourne have had to bear the brunt of all that growth.”

“We’re in a housing crisis and the status quo is not an option. It’s time to shake things up,” the Premier said.

She says the Government’s housing targets will take pressure off Melbourne’s urban fringe areas by delivering 70% of growth in established areas and 30% of growth in the outer suburbs.

New greenfield housing sub-targets that have been introduced for growth area councils in metro Melbourne – as well as in Geelong, Bendigo and Ballarat – are all about recognising those unique growth pressures, said Minister Kilkenny.

The statewide target projects 25% of homes will be in Regional Victoria by 2051. Targets will mean regions can continue growing the right way, in line with their traditional share of the state’s homes and population, she said.

“There are many councils who have done the right thing and made life better and more affordable for locals.”

“To the councils who used to block and who are now ready to build, I say to them: let’s talk,” said Ms Kilkenny.

The Premier and Minister said councils that have previously clamped down on home growth – citing City of Boroondara Council – are now “ready to focus on the future”. The targets state 65,500 new homes will be needed in Boroondara by 2051 – an 88% increase.

“This rate of growth is appropriate for Boroondara, given the space in the municipality for gentle infill, the opportunity to unlock strategic sites, the busy commercial precincts in Camberwell, Hawthorn and Kew, and an inner-suburban setting close to well-serviced trams and train lines that have had every level crossing removed.”

“These targets are about the capacity in each council area for more homes. It’s up to councils to work together with Government and industry to unlock this capacity in a way that’s right for the community.

“But if councils have no interest in doing so, there will be consequences.”

The landmark Plan for Victoria, to be released soon, will contain a declaration that Government will hold councils accountable with explicit directions to change planning schemes if they are not providing enough housing capacity – and, if required, the Government will step in to update planning schemes.

“It means that if councils don’t start doing the planning work now to meet these targets, the Government will intervene and unlock space for more homes – including through rezoning,” said the Premier.

The Minister for Planning will also retain her powers to intervene or fast-track developments.

“There are regular formal steps in the planning process over the coming years where Government can clearly discern if a council is serious or not about tackling the housing crisis and making more room for homes. It’s in their hands,” said Minister Kilkenny.

The final council housing targets for every local government area can be found at: engage.vic.gov.au/project/developing-a-new-plan-for-Victoria/page/housing-targets-2051.

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